Chapter 1: The Import of MIS

Using MIS
Tenth Edition
Chapter 1
The Importance of MIS
Slides in this presentation contain

hyperlinks. JAWS users should be
able to get a list of links by using
INSERT+F7
Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved
“But Today, They’re Not Enough.”
• What's not good enough?

• What should Jennifer have done differently?
• To what extent are the four skills required in your
education so far?
• How do you feel about working with ambiguity?
“But Today, They’re Not Enough.”
• Jennifer Lacks Skills Falcon Security Needs:

1. Abstract reasoning skills.
2. Systems Thinking Skills.
3. Collaboration Skills.
4. Experimentation Skills.
What Do Employers Want?
• Self starter, Don’t wait to be told what to do.

• Team worker
– Develops ideas with others.
– Asks questions.
– Pulls more than their own weight.
Learning Objectives
1.1 Why is Introduction to MIS the most important class in

the business school?
1.2 How will MIS affect me?
1.3 What is MIS?
1.4 How can you use the five-component model?
1.5 What is information?
1.6 What are necessary data characteristics?
1.7 2027?
Learning Objective 1.1
• Why Is Introduction to MIS the Most Important Class in

the Business School?
The Digital Revolution
• Technology fundamentally changing business.

• Information Age
– Production, distribution, control of information primary
economic drivers.
• Digital Revolution
– From mechanical/analog devices to digital devices.
Understanding the Forces Pushing the
Evolution of New Digital Devices
• Bell’s Law
– New class of computers establishes a new industry
each decade.
▪ New platforms, programming environments,
industries, networks, and information systems.
• Understand how next digital evolution will affect
businesses.
• What an industry does and how it does it will change.
Computer Price/Performance Ratio
Historical Trend
Figure 1-1 Computer Price / Performance Ratio Decreases
Metcalfe’s Law
• Network value equal to Figure 1-2 Increasing Value of Networks

square of number of
users connected to it.
(V = U2 )
– Google, Amazon,
eBay exist due to
large numbers of
Internet users.
Fundamental Forces Changing Technology
Law Meaning Implications
Computers are getting exponentially
The number of transistors per
Moore’s Law faster.
square inch on an integrated chip
The cost of data processing is
doubles every 18 months.
approaching zero.
More digital devices are being
The value of a network is equal to
Metcalfe’s connected together.
the square of the number of users
Law The value of digital and social
connected to it.
networks is increasing exponentially.
Network connection speeds for Network speed is increasing. Higher
Nielsen’s
high-end users will increase by 50 speeds enable new products,
Law
percent per year. platforms, and companies.
Storage capacity is increasing
The storage density on magnetic
exponentially.
Kryder’s Law disks is increasing at an
The cost of storing data is
exponential rate.
approaching zero.
Figure 1-4 Price of Storage Capacity per GB
This is the Most Important Class in the
School of Business Because You Will Learn
• How technology fundamentally changes businesses.

• Why executives try to find ways to use new technology to
create a sustainable competitive advantage.
• Assess, evaluate, apply emerging information technology
to business.
• Help you attain knowledge needed by future business
professionals.
• How Will MIS Affect Me?
Technological Change is Accelerating
• Bell’s Law
– Today’s highly successful business could be bankrupt
quickly because technology changed and it didn’t.
• Example: Blockbuster
– In 2004 Blockbuster had $5.9B in revenues
– In 2010 Blockbuster filed for bankruptcy
– High-speed network connections and streaming video
changed the competitive landscape
What about Vietnam?
How Can I Attain Job Security?
• Moore’s Law, Metcalfe’s Law, and Kryder’s Law

– Driving data processing, storage, communications
costs to essentially zero.
• Any routine skill can, and will, be outsourced to lowest
bidder.
What Skills Will Be Marketable During
Your Career?
• Rapid technological change and increased international

competition:
– Requires skills and ability to adapt.
– Favors people with strong non-routine cognitive skills.
– Message: Develop strong non-routine cognitive
skills.
What is a Marketable Skill?
Figure 1-5 Examples of Critical Skills for Nonroutine Cognition
Jennifer's Problem at Falcon

Skill Example
Security
Hesitancy and uncertainty when
Abstract Construct a model or conceptualizing a method for
Reasoning representation. identifying 3D printable drone
parts.
Model system components and
Inability to model Falcon
Systems Thinking show how components’ inputs and
Security’s operational needs.
outputs relate to one another.
Develop ideas and plans with
Unwilling to work with others on
Collaboration others. Provide and receive critical
work-in-progress.
feedback.
Create and test promising new
Ability to Fear of failure prohibited
alternatives, consistent with
Experiment discussion of new ideas.
available resources.
How Can Intro to MIS Help You Learn
Non-Routine Skills? (1 of 4)
• Abstract Reason
– Ability to make and manipulate models.
– Learn to use and construct abstract models.
▪ Ch. 1: Five components of an IS model.
▪ Ch. 5: How to create data models.
▪ Ch. 10: How to make process models.
• Systems Thinking
– Ability to model system components, connect inputs
and outputs among components to reflect structure
and dynamics.
– Ability to discuss, illustrate, critique systems; compare
alternative systems; apply different systems to
different situations.
• Collaboration
– People working together to achieve a common goal,
result, or work product.
– Ch. 2 discusses collaboration skills and illustrates
several collaboration information systems.
• Ability to Experiment
– Make reasoned analysis of an opportunity; develop
and evaluate possible solutions.
▪ “I’ve never done this before.”
▪ “I don’t know how to do it.”
▪ “But will it work?”
▪ “Is it too weird for the market?”
• Fear of failure paralyzes many good people and ideas
Jobs
• 69% of college graduates need additional training or

education.
• 46% working in jobs not requiring their degree,
underemployed.
• Better success for students with courses related to
information systems.
• Tradable job
– Job not dependent on particular location, can be
offshore outsourced.
Job Growth by Sector Over the Past
Twenty Years
Figure 1-6 Growth of Jobs by Sector from 1989 to 2009
BLS Occupational Outlook 2014-2024 (1 of 2)
Figure 1-7 Bureau of Labor Statistics Occupational Outlook 2014–2024
Business Managers
Job Growth (%)
Blank 2012 Median Pay 2014 Median Pay Job Growth (N) 2014-24
2014-24
Marketing Managers $ 115,750 $ 123,450 9% 19,700
Information Systems
$ 120,950 $ 127,640 15% 53,700
Managers
Financial Managers $ 109,740 $ 115,320 7% 37,700
Human Resources Managers $ 99,720 $ 102,780 9% 10,800
Sales Managers $ 105,260 $ 110,660 5% 19,000
Computer and Information Technology

Job Growth (%)
2014-24
Computer Network Architects $ 91,000 $ 98,430 9% 12,700
Computer Systems Analysts $ 79,680 $ 82,710 21% 118,600
Database Administrators $ 118,700 $ 80,280 11% 13,400
Information Security Analysts $ 87,170 $ 88,890 18% 14,800
Network and Systems Admin. $ 72,560 $ 75,790 8% 30,200
Software Developers $ 93,350 $ 97,990 17% 186,600
Web Developers $ 62,500 $ 63,490 27% 39,500
BLS Occupational Outlook 2014-2024 (2 of 2)
Figure 1-7 [continued]
Business Occupations
Job Growth (%)
2014-24
Accountants and Auditors $ 63,550 $ 65,940 11% 142,400
Financial Analysts $ 76,950 $ 78,620 12% 32,300
Management Analysts $ 78,600 $ 80,880 14% 103,400
Market Research Analysts $ 60,300 $ 61,290 19% 92,300
Logisticians $ 72,780 $ 73,870 2% 2,500
Human Resources
$ 55,640 $ 57,420 5% 22,000
Specialists
Bottom Line of MIS Course
Most important course in business school because:

1. Gives background needed to assess, evaluate, and
apply emerging information systems technology to
business.
2. Gives marketable skills by helping you learn abstraction,
systems thinking, collaboration, and experimentation.
3. Makes you aware of well-paying, high demand MIS-
related jobs.
• What is MIS?
Management Information Systems (1 of 2)
• Key elements
1. Management and use
2. Information systems
3. Strategies
• Goal of MIS:
– Managing IS to achieve business strategies.
Management Information Systems (2 of 2)
• Management and use to:

– Develop, maintain, adapt by:
▪ Creating an information system that meets your
needs, take an active role in system’s
development. Why?
▪ Business professionals using cognitive skills to
understand business needs and requirements.
Components of an Information System?
Figure 1-8 Five Components of an Information System
Difference Between IT and IS
• Information technology (IT)

1. Products
2. Methods
3. Inventions
4. Standards
– IT drives development of new IS.
– IT components = Hardware +
Software + Data
– IS = IT + Procedures + People
Development and Use of Information
Systems
• Business professionals need to:

– Take active role to ensure systems meet their needs.
– Understand how IS constructed.
– Consider users’ needs during development.
– Learn how to use IS.
– Remember ancillary requirements (security,
backups).
Achieving Strategies
• Information systems exist to help people achieve

business strategies.
– “What is the purpose of our Facebook page?”
– “What is it going to do for us?”
– “What is our policy for employees’ contributions?”
– “What should we do about critical customer reviews?”
– “Are the costs of maintaining the page sufficiently
offset by the benefits?”
• How Can You Use the Five-Component Model?
The Five-Component Model
Characteristics of the Five Components
• Most Important Component – YOU!

– Your cognitive skills determine quality of your
thinking, ability to conceive information from data.
– You add value to information and information
systems.
• Only humans produce information.
• All components must work together.
Why is the Difference Between IT and IS
Important to You? (1 of 2)
• Avoid common mistake: Cannot buy an IS.

– Can buy, rent, lease hardware, software, and
databases, and predesigned procedures.
• People execute procedures to employ new IT.
• New systems require training, overcoming employee
resistance, and managing employees as they use new
system.
Why is the Difference Between IT and IS
Important to You? (2 of 2)
• High-tech vs. low-tech information systems.

– Consider amount of work being moved from people to
computers.
• Understanding scope of new information systems.
– Assess how big an investment new technology
represents.
• Components ordered by difficulty and disruption.
A is for Alphabet (1 of 2)
So What?
• The Internet has enabled innovation and changed our
lives.
• Google is one of the largest publicly traded companies in
the world with a diverse portfolio of projects.
• As of August 10, 2015, it was a subsidiary of an
overarching company named Alphabet Inc.
• Page and Brin manage the overall strategy, but not daily
operations of each company.
A is for Alphabet (2 of 2)
• The company was restructured to:

– Retain top talent in a highly competitive industry.
– Decrease bureaucratic climate.
– Improve internal career trajectories of industry
superstars.
– Make individual companies more nimble, efficient,
and autonomous.
• What is Information?
Defining Information
Definitions vary:
1. Knowledge derived from data.
2. Meaningful context.
3. Processed data, or data processed by summing,
ordering, averaging, grouping, comparing, or similar
operations.
4. “A difference that makes a difference.”
Figure 1-9 Amazon.com Stock Price and
Net Income
Where is Information?
• Graph is not information.

– It’s data people perceive and use to conceive
information.
• Ability to conceive information determined by cognitive
skills.
• People perceive different information from same data.
• You add value by conceiving information from data.
• What Are Necessary Data Characteristics?
Characteristics of Data
• Accurate
• Timely
• Relevant
– To context
– To subject
• Just sufficient
• Worth its cost
Ethics and Professional Responsibility (1 of 3)
Ethics Guide
Figure 1-3 Measuring growth of units sold using different axis values
Immanuel Kant
• Categorical imperative
– One should behave only in a way that one would
want the behavior to be a universal law.
▪ Are you willing to publish your behavior to the
world?
• Necessity to act in accordance with categorical

imperative.
– Perfect duty - behavior that must always be met.
– Imperfect duty - a praiseworthy action, but not
required.
▪ Giving to charity, developing your business skills
and abilities.
Imperfect Duty of Business Professionals
Ethics Guide: Ethics and Professional Responsibility
• Imperfect duties
– Cultivating your talent is a professional responsibility.
– Obtaining skills necessary to accomplish your job.
– Continuing to develop business skills and abilities
throughout your career.
• 2027?
MIS in 2027
• Most computers won’t look like computers.

Quantum Computers
https://youtu.be/o-FyH2A7Ed0?feature=shared
• Smartphones
– 1Gbps network connection,
– 1 Exabyte storage,
– Teraflop+ processing power,
– Connect to any electrical device,
– Store/stream every song and movie ever made to any
device,
– Battery life over a ©month
Copyright on2016
2018, 2017, a Pearson
single charge.
Education, Inc. All Rights Reserved
Technology in 2027
• BYOD common.
• Comprehensive bio-monitoring devices at home, linked to
health care systems.
• Widespread use of Google Glass or Microsoft’s
HoloLens.
• More people work at home or wherever.
• Knowledge and use of business information systems will
be more important, not less.
Passwords and Password Etiquette (1 of 2)
Security Guide
• 10+ characters.
• Does not contain your user name, real name, or company
name.
• Does not contain a complete dictionary word in any
language.
• Different from previous passwords used.
• Contains both upper- and lowercase letters, numbers,
and special characters (such as ˜ ! @; # $ % ^; &; * ( ) _
+; – =; { } | [ ] \ : “ ; ’ <; >;? , . /)
Passwords and Password Etiquette (2 of 2)
• Never write down your password.

• Never ask someone for their password.
• Never give your password to someone.
• “do-si-do” move—move away so another person can
enter password privately.
– Common professional practice.
Five-Component Careers
Career Guide
Blank Hardware Software Data Procedures People
Vendors Vendors Vendors Vendors Recruiters
Sales &
(IBM, Cisco, (Microsoft, (Acxiom, Google, (SAP, Infor, (Robert Half,
Marketing
etc.) Oracle, etc.) etc.) Oracle) Lucas Group)
Database Vendors and
Vendors Vendors Customer support
Support administration internal customer
Internal MIS Internal MIS Training
Security support
Application Business process
Computer Training
programmer Data modeler management
Development engineering Internal MIS
Quality test Database design Process
Internal MIS recruiting
Engineer reengineering
Data Project Technical
Management Internal MIS Internal MIS
administration management management
Project Project Project Project Project
management, management, management, management, management,
Consulting development, development, development, pre- development, pre- development, pre-
pre- and pre- and and postsale and postsale and postsale
postsale support postsale support support support support
Zulily (1 of 7)
Case Study 1
• What is the business model?

– Flash sales to mothers:
▪ Children’s clothes, toys, women’s clothes,
accessories, and décor items.
– IT provides entertaining shopping experience, name
brand goods, unique and difficult-to-find off-brands, at
substantial discounts.
– 45% of sales over mobile devices.
– Curated sales.
Zulily (2 of 7)
Figure 1-11 zulily Merchandise Variety Courtesy of zulily Inc. Used by

permission
Zulily (3 of 7)
blank 2010 2011 2012 2013 2014
Number of active customers

157 791 1580 3,200 4,900
(thousands)
Revenue (millions) $18 $143 $331 $696 $1,200
Sales per active customer $117 $180 $210 $218 $245
Figure 1-13 zulily Performance

Courtesy of zulily Inc. Used by permission
Zulily (4 of 7)
• How did they do it?

– Buyers identify goods to be sold, negotiate with
vendors.
– Photographs sample items in-house, write ad copy.
– Group items for 3-day sales events.
– After event closes, zulily orders items from vendor,
receives, packages, and ships to customers
(maintains no inventory).
– Vulnerable to vendor’s errors and mistakes.
Zulily (5 of 7)
• Use of Technology at zulily

– “Continual innovation through investment in
technology is core to our business.”
– Internet, mobile technology compatibility.
– Developed a proprietary technology platform to
handle. Enormous spikes in web processing demand.
– Extensive data collection and analytics capabilities.
Zulily (6 of 7)
• Growth-management problems
– Must effectively integrate, develop and motivate a
large number of new employees, while maintaining
corporate culture. Continue to make substantial
investments to expand merchandising and technology
personnel.
– Need to hire mid-level managers.
– Finding and retaining merchandising and technology
personnel difficult
Zulily (7 of 7)
• Lessons Learned
– Technology zulily uses not ground breaking.
– Developed innovative application of information
systems technology.
– Applied it to a business opportunity.
– Managerial skill to develop that idea.
Copyright

Chapter 1: The Import of MIS

Uploaded by

Copyright:

Available Formats

Chapter 1: The Import of MIS

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 1: The Import of MIS

Uploaded by

Copyright:

Available Formats

Using MIS

Slides in this presentation contain

• What's not good enough?

• Jennifer Lacks Skills Falcon Security Needs:

• Self starter, Don’t wait to be told what to do.

1.1 Why is Introduction to MIS the most important class in

• Why Is Introduction to MIS the Most Important Class in

• Technology fundamentally changing business.

• Network value equal to Figure 1-2 Increasing Value of Networks

• How technology fundamentally changes businesses.

• How Will MIS Affect Me?

• Moore’s Law, Metcalfe’s Law, and Kryder’s Law

• Rapid technological change and increased international

Jennifer's Problem at Falcon

• 69% of college graduates need additional training or

Computer and Information Technology

Most important course in business school because:

• Management and use to:

• Information technology (IT)

• Business professionals need to:

• Information systems exist to help people achieve

• How Can You Use the Five-Component Model?

• Most Important Component – YOU!

• Avoid common mistake: Cannot buy an IS.

• High-tech vs. low-tech information systems.

• The company was restructured to:

• Graph is not information.

• What Are Necessary Data Characteristics?

• Necessity to act in accordance with categorical

Ethics Guide: Ethics and Professional Responsibility

• Most computers won’t look like computers.

• Never write down your password.

• What is the business model?

Figure 1-11 zulily Merchandise Variety Courtesy of zulily Inc. Used by

blank 2010 2011 2012 2013 2014

Number of active customers

Revenue (millions) $18 $143 $331 $696 $1,200

Sales per active customer $117 $180 $210 $218 $245

Figure 1-13 zulily Performance

• How did they do it?

• Use of Technology at zulily

You might also like